ANNOUNCEMENT 19 Jul 2016

In July 2016, the government of Poland announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



EIB Information Sheet
http://www.eib.org/projects/pipeline/2016/20160083
European Commission (20 July 2015): The Investment Plan for Europe: Questions and Answers. Available at
http://europa.eu/rapid/press-release_MEMO-15-5419_en.htm
EIB: European Fund for Strategic Investments - Questions and Answers. Available at http://www.eib.org/attachments/press/investment_plan_for_europe_qa_en.pdf


Inception date: 19 Jul 2016 | Removal date: open ended
Still in force

State loan

On 19 July 2016, the European Investment Bank agreed to provide 46 million EUR for the Polish rail operator Przewozy Regionalne, as part of the European Fund for Strategic Investments (henceforth: EFSI).
The funds will be used to purchase new and modernise the current rolling stock of the company. The total costs of the project amount to 107 million EUR.
EFSI support does not fall under EU State Aid rules as it is meant as a tool to address "market failures or sub-optimal investment situations". However, the investment support does include favourable conditions in the form of public assumption of risk.
As described in the European Commission's Fact Sheet form 20 July 2015: "The type of risk-financing instruments will be designed so as to take uncertainty out ("first loss protection") of as such viable projects and therefore crowd-in private sector investments. Since the EFSI will take riskier tranches in investment projects, the private sector will be able to join under more favourable conditions." Furthermore, the EIB states that "The new initiative 'i.e. the EFSI' will benefit from the EIB's strong credit standing that enables funding at favourable conditions and across maturities".
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support proposed here is discriminatory.
 

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